Naira strengthens to N1,480 per dollar as CBN reforms, rising reserves, and higher remittances boost forex market stability in Nigeria

Data from the Central Bank of Nigeria (CBN) shows the naira has been appreciating since early September, when it traded at N1,526.09 per dollar.

Also read: Naira Strengthens to N1,500/$ as Reserves Hit $41.6bn

The parallel market mirrored the trend, with rates ranging between N1,490 and N1,495 this week.

CBN Governor Olayemi Cardoso attributed the improvement to higher demand for the naira, reduced speculation, and rising external reserves, which now stand at $43.05 billion—enough to cover 8.28 months of imports.

The current account also recorded a $5.28 billion surplus in Q2 2025, up from $2.85 billion in Q1.

Analysts said the CBN’s reforms are stabilising the forex market, improving transparency, and giving businesses better access to dollars.

Ifeanyi Ubah, Head of Research at Commercio Partners, noted that oil revenue, rising reserves, and stronger investor confidence are helping the naira gain a more solid footing than during past periods of volatility.

The Association of Bureaux De Change Operators of Nigeria (ABCON) President, Aminu Gwadabe, praised the CBN’s policies, highlighting diaspora remittances, estimated at $23 billion annually, as a key source of forex inflows.

Since assuming office in October 2023, Cardoso has implemented measures to strengthen economic stability, including unifying the exchange rate system, clearing a backlog of over $7 billion in unpaid forex obligations, and introducing an electronic FX matching system to improve transparency.

The CBN is also promoting a willing-buyer, willing-seller model and encouraging more remittances to attract dollar inflows.

Experts cautioned that sustaining the positive trend depends on maintaining economic discipline, increasing crude oil output, and diversifying export earnings

Also read: Naira Strengthens Against Dollar to Six-Week High, Boosting Confidence

A stronger naira reduces the cost of imports, since duties and taxes are often calculated using the prevailing exchange rate, benefiting businesses and consumers alike.